The Child Tax Credit did not pass as an expanded program for 2023
The Child Tax Credit continued in 2023, but at reduced amounts compared to 2021 and 2022. The credit went back to $2,000 per child under 17, down from the temporary $3,600 (under age 6) and $3,000 (ages 6–17) that Congress had approved for those two years. The monthly advance payments that families received in 2021 and 2022 also ended — the credit is now only available when you file your tax return, not as monthly cash payments.
This happened because the expanded credit was written as temporary. When Congress did not pass a new law to extend it, the credit automatically reverted to its permanent form on January 1, 2023. No new legislation passed to restore the higher amounts or the monthly payment structure.
Key Takeaways
- The Child Tax Credit for 2023 is $2,000 per child under 17, not the $3,000–$3,600 amounts from 2021–2022.
- You receive the credit only when you file your 2023 tax return, not as monthly payments during the year.
- The credit phases out for higher earners: starting at $400,000 for married couples filing jointly and $200,000 for single filers.
- You must have a valid Social Security number for each child to claim the credit on your return.
How the 2023 Child Tax Credit works
The $2,000 credit applies to each child under age 17 at the end of 2023. You claim it on your federal tax return (Form 1040) when you file. The credit reduces the federal income tax you owe dollar-for-dollar, and any amount that exceeds your tax liability may be refunded to you, up to $1,600 per child.
To claim the credit, you must be the child's parent or legal guardian, live with the child for more than half the year, and provide more than half their financial support. The child must be a U.S. citizen, national, or resident alien with a valid Social Security number.
The credit begins to phase out if your modified adjusted gross income exceeds $400,000 (married filing jointly) or $200,000 (single, head of household, or married filing separately). For every $1,000 over the threshold, the credit reduces by $50.
Why the expanded credit ended after 2022
Congress created the expanded Child Tax Credit as part of the American Rescue Plan in March 2021. The law set an expiration date: December 31, 2022. The expanded amounts ($3,600 for children under 6 and $3,000 for children 6–17) and the monthly advance payment system were always intended to be temporary relief during the pandemic.
In late 2022, Congress did not pass legislation to extend the expansion. Without a new law, the credit automatically returned to its permanent structure: $2,000 per child, claimed only on your tax return, with no monthly payments.
Proposals to extend or restore the expanded credit have been introduced in Congress since then, but none have passed into law as of 2023.
What changed between 2022 and 2023
| Feature | 2021–2022 | 2023 |
|---|---|---|
| Credit per child under 6 | $3,600 | $2,000 |
| Credit per child ages 6–17 | $3,000 | $2,000 |
| Monthly advance payments | Yes (July–December 2021, full year 2022) | No |
| When you receive the credit | Monthly cash + tax return | Tax return only |
| Maximum refundable amount | $3,600 per child | $1,600 per child |
Who can claim the Child Tax Credit in 2023
You can claim the credit if you are the parent, stepparent, or legal guardian of a child under 17. The child must live with you for more than half the year and be claimed as your dependent. You must provide more than half the child's financial support during the year.
The child must have a valid Social Security number and be a U.S. citizen, national, or resident alien. If the child was born or adopted in 2023, you can still claim the credit on your 2023 return.
If your income is above the phase-out threshold, you can still claim the credit, but the amount will be reduced. There is no income floor — even if you earned no income, you may be able to claim a refundable portion of the credit.
How to claim the credit on your 2023 tax return
When you file your 2023 federal tax return, you will report the Child Tax Credit on Schedule 8812 (if you are claiming the refundable portion) or directly on Form 1040. You will need the child's full name, date of birth, and Social Security number for each child you are claiming.
If you file with a tax preparer or software, they will ask you for this information and calculate the credit automatically. If you file by mail, you must complete the form by hand and include it with your return.
The IRS processes returns and issues refunds based on the credit amount. If you are owed a refund that includes the Child Tax Credit, it may take several weeks to receive it, depending on how you filed and how you requested payment.
Frequently Asked Questions
Can I get the Child Tax Credit as monthly payments in 2023?
No. Monthly advance payments ended on December 31, 2022. The only way to receive the credit in 2023 is to claim it on your federal tax return when you file. You will receive the full amount (or the refundable portion) when the IRS processes your return.
What if I have more than one child?
You can claim $2,000 for each child under 17. If you have three children, the total credit is $6,000 before any phase-out reduction. The refundable portion is capped at $1,600 per child, so the maximum refund is $4,800 for three children.
Do I lose the credit if my income is too high?
The credit phases out if your income exceeds $400,000 (married filing jointly) or $200,000 (single). You do not lose it entirely — it reduces by $50 for every $1,000 over the threshold. Most families will still receive at least some credit unless their income is significantly above the limit.
What if I did not file a tax return in previous years?
You can still claim the 2023 Child Tax Credit by filing a 2023 return. If you did not file in 2021 or 2022, you cannot go back and claim the expanded credit from those years — the deadline to claim it has passed. But you can claim the 2023 credit when you file your 2023 return.
Can I claim the credit if the child's other parent also claims them?
No. Only one person can claim the credit for each child. If you and the other parent are unmarried and do not file jointly, you must agree on who will claim the child. If you cannot agree, the IRS has rules about who has the right to claim the child, usually based on who has custody.